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  FOX Business    Varney Company    Wall Street news.  

    March 3, 2014
    11:00 - 1:01pm EST  

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maria: it is fishing for companies on a cost effectiveness as well. really wonderful to have you. sean o'sullivan is joining us. "varney & company" is up next. charles payne in for stewart's today, take it away, charles. charles: thank you, maria. mitt romney saw this coming. and now russia is winning the global chess match. match. good morning, everyone, i am charles payne in for stuart. here is your big story today. the prices in ukraine is a financial story. coming days after major cuts to u.s. military budget and manpower improves the need to build the keystone pipeline. the market down a triple digits right now, many going into oil and gold for the moment. tim cook, apple's chief, said don't buy the stock if you don't believe in global warming. and the man that could be the first legitimate google glass competitor. buckle up ffr two hours on a big day for your money.
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"varney & company" is about to begin. ukraine is the big drag on the stock market this morning. you can see up 137 points. also affecttng the oil market. having a big move up, $2.41. sandra smith is with me. how long is this going to last? sandra: this is seen as a short-term threats to oil prices right now. is there any serious threats to those will supplies going out? nobody is seeing it as that. this is likely a short-term run-up. 5.5 million euros per day. russia is a major exporter of energy to europe and a lot of those pipelines go through ukraine. this is a fear premium put into the price of energy and it is
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affecting our everyday prices. charles: it has applications to the idea this will be east-west, for tat economic sanctions. to a large degree europe needs that oil. sandra: this is also being seen as an opportunity for the united states. the reopen of the discussion of the keystone pipeline, more exports of liquefied natural gas. this could be an opportunity for the united states. charles: oil was already breaking out before this crisis. anything else going on beneath the surface other than the headlines? sandra: it is a safe haven buying. people want to own something other than equities because they see those as the riskiest assets to own right now. charles: a huge move up $31, what is it? gold has one of the roughest years ever last year, now all of
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a sudden it is seen as a safe haven, why is it a safe haven? sandra: everybody institutionally are piling on. the most bullish they have been on gold in months. they are piling onto the long side of these things. some describe it as the perfect storm, charles, because were talking about gold finding a bottom. all of a sudden we have a bullish scenario like ukraine and everybody is buying gold now. u.s. investors are buying gold. charles: i think it breaks out north of 1400. that is my own number. gold stocks are also performing very well. nicole, give us some details. nicole: a commodity itself, sometimes you don't see them moving together. it is a flight to safety, concerns about the ukraine, everybody moving to the safe havens such as gold. kinross gold up as gold is up
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over $31. this is an area people are buying today, a lot of selling. charles: and little sprinkle of green on the screen. maybe not for the right reasons. thank you. here's latest from the ukraine. senior obama administration official says russia is taking complete operational control of the peninsula. 6000 russian ground troops, naval forc forces on the ground, protesters throughout the streets fox news security analyst katy mcfarland is with us. first and foremost, how far as russia prepared to push this? >> nobody is pushing back. take ukraine, strategic interest for them, my guess is they keep going and they keep eastern ukraine. charles: nobody has talked about that yet. >> i think that is what they will do next. they go to an area, ukraine, a large russian minority population.
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but in crimea it is the majority population. they gave them all russian citizenship and say we are protecting our citizens. they do the same thing with eastern ukraine where there is a large population. not majority like ukraine, but a large percentage. they give them russian citizenship and if things go bad they say we are only protecting citizens, we are not invading. charles: we have seen that happen before. they did it in austria and other places. want to head to the white house, peter barnes is there. what can i do besides sanctions? >> charles, they're talking about making the g8 the g7. they have halted preparations with the g8 for this meeting planned for sochi in june. they're talking about bands on visas for russian officials. asset freezes possibly for them
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to suspend trade and investment talks between the united states and russia. the administration is also urging private companies that have operations in russia are considering asking them to think twice about them. charles: i cannot imagine vladimir putin losing 1 ounce of sweat over the g8 becoming g7. here is the deal, ukrainians owe a lot of money. they are saying we need about 34 billion or else russia will consume us. how much will this cost america? the viewers watching the show right now. >> the cemetery a state john kerry said united states would do a billion dollars in loans guarantees, so that could be at risk, and as you mentioned it needs to do billions more, most likely coming to the at national monetary fund of which the united states is the biggest shareholder. just this morning ukraine's
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economic minister said they need 15 billion, they need 15 billion over the next two years from the imf. we could be on the hook for some of that as well. charles: thank you very much. i want to get back to katy mcfarland. you have an opinion piece on foxnews.com. let's go through them one by one. >> okay. immediately we will rethink the missile shield that president obama cancelled in poland, the czech republic. that gets the russians very nervous. and then we do the economic stuff, we say the defense budget. the same day the russians were saying when negotiating with new bases around the world and we will restore and revitalize the military base in the former soviet union. and then the third thing is start hitting them economically. putin has played a long game
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here. he wrote his graduate dissertation on how russia was going to be great again. it was going to use the economic weapon, build pipelines to europe and sell europe natural gas and therefore have clinical control. big oil revenues and windfall to pay for everything. we can go and tell them we are now going to reverse that. we're going to underwrite terminals in western europe, so the new natural gas exports can go to europe. we will talk to the central european, that whole region. we're going to help you develop that. what does it do to the price of oil? you can go down 20%. charles: to your point, russia's economy over the last ten years have been something of a jog or
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not. >> it will not last forever. we will put a roadblock in every single way. you do not get it. charles: the timeline -- who can take that kind of pain? it is a delicate situation. we should have been prepared. charles: okay. k.t. mcfarland making news once
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again. more bad winter weather hitting the east coast today. the whole country has been hit by this story. blaming winter storms and cold weather temperatures are being blamed for ford's numbers. here is something that you may have missed. tim cook angrily responding to a question. cook was asked if apple would stop devoting its energy to environmental issues. if you are a global warming skeptic, get out of the stock. if cook keeps alienating shareholders, ultimately this could hurt the company and the stock. >> this is never a good message
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to send to your shareholders. you should get out of the stock. some of it says apple's sustainability programs may not be good for topline growth that apple. tim cook said when making our device is acceptable for the blind, i do not consider that roi. if you do not believe in climate change and global warning, do not own apple shares. charles: it has been a real underperformer. in part because he is not steve jobs. ahead of return on investment. that is why people invest in your company.
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>> you have an obligation. you need to do what is in the best interest of shareholders. charles: at the end of the day, when steve jobs passed away, you have the ideology first. the irs scandal. does she know something? all eyes. the judge is next. ♪
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charles: a check on the big boards. no one really stepping up just yet. a real crazy session. check the price of gold. of $33. the new ceo of microsoft. a couple microsoft executives.
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reporting business development and marketing are expected to leave this week. not uncommon for a bruised ego to be out there when a change at the top. >> we have seen this in corporate history. this does indeed have been. just after stuart varney was hailing its recent rally. this is something that they shareholders will have to consider. it could dramatically affect the company. >> he pulled his hat out of the ring. obviously, people at microsoft that were looking at other candidates.
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microsoft, past ten years, what have you done for me lately? charles: lois lerner will report before congress on wednesday. all rise, judge andrew napolitano is here. >> i suspect that her lawyers and the lawyers for the committee are attempting to negotiate an agreement which will govern her testimony. congressman isa probably was so happy that she may testify and may have jumped the gun. charles: jumped the gun in a
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sense of letting the public know? not granted immunity. >> he did not say what it was. i cannot imagine her testifying. she is exposing herself too3 criminal liability. remember, this is not an ordinary negotiation. she will have to testify. immunity removes that amount of protection. think about it. if the government has agreed they cannot prosecute you, you have no need for that protection. charles: she may be eager to get this over with. eager to testify. >> if she is not, she is facing years of civil and criminal
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litigation. i think she is eager to get it over with. the typical model is, you do not pick the top person. you do not pick the bottom person. you pick a present close enough to the bottom that they cannot testify against the person at the top. the top person is arguably the president of the united states. >> you want to go high enough up the food chain so you have high enough material on the person at the top. the goal is to rid the government of people who have abused government power. if you cannot read the government, you want to public to know who they are. charles: would this be the last chance of finding a smoking gun in this?
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>> no. i do not think that it is the last chance at all. she is a household name because of the position she held at the irs and because of her weird statement last night. there are others whose names are unknown to us. who have been interviewed by the lawyers. probably providing substantial information. we could be in for some real fireworks. wednesday could be one of the biggest news days of the week's. >> when the congress grants you immunity, that could be done in today's, but it usually takes longer than that.
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the application of the federal judge has to come from the justice department. i do not think all of that can come together by then. charles: hopefully we will push it forward to some conclusion. >> it is extraordinary. if congress dropped the ball, @embers of congress should be out. there are too many innocent freedom loving americans who did nothing more than express the first amendment rights. charles: thank you very much. both democrats and republicans spend millions of dollars trying to target millennial's. one problem, it is not working. we have the answers next. ♪
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charles: politicians just do not understand. neither the left or the right has figured out a way to secure their votes. >> the left and the right together spend about $100 million per year. neither side understands millennial's. you look at the other class in particular. they have now dissipated that lead. you have young americans who have seen the level. we're going four to eight years,
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we are seeing a lot of fuel and a lot of energy there. charles: this ideology does not match the consumer at all. >> when i talk to young people and i say probably 90% of the time i will say, what are your political views. they will say to me i am socially political. they are in fact libertarians. i think there is real world. we need to bring these voters into the libertarian party. sandra: $100 million a year is spent on advertising targeting millennial's. whaa would be the most effective method to reach out?
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>> if you can put forth the message, get the government out of the way, move it aside, that is a very effective method. rand paul went to howard university. go to the campuses and bring this method. if the government out of the way. leave us alone. charles: the democrats fancy themselves to be hip. how come the democrats are having such trouble. >> it backfired on them. you see these organizations trying to sign-up for obamacare. the millennial's are doing keg stands.
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charles: what young man out there is identified with this guy? >> pajama boy. sitting on our couch waiting for obamacare. a misunderstanding for sure. charles: when election time comes around, maybe we will start to see it materialize. young people identify with them whether they are ready to acknowledge it or not. >> the real buried story was ron paul. there is a myth that millennial's just showed up and voted for obama. he lost 1.5 billion millennial's. lost them. it is a complete mess.
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charles: libertarians, they probably will not have their own line. the gop has to accept the libertarians. >> yes. absolutely. both sides need to come together. we live in a two-party system. the republican party -- we cannot isolate people. that is for sure. charles: we will see what happens. we love when you bring us this knowledge. we always look forward to miami in the background. >> thank you, charles. charles: we have what could be a legitimate competitor to google
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glass. something that a normal person would wear. we will talk to the man behind it next. ♪ up. a short words a tall order. up your game. up the ante. and if you stumble, you get back up.
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charles: a real quick look at markets. under a considerable amount of pressure. oil has been up all morning. the big story of the day, movement through gold. $32.1353. new data finds that the grip on apples tablet market is slipping. 62% of android tablets, that is a big drop from last year, 53% of the tablets sold were ipads. sandda, what is going on?
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sandra: which one is cheaper? [laughter] sandra: that is the one that is winning. everyone that i have seen is under $200. you will not get an apple ipad for that price. android is winning this war on tablets with the lower prices. charles: they had amazing pricing power. people would pay a premium for their products. we need something to distinguish ourselves and keep that pricing power. >> we are looking at statistics in a year were apple did not have any major reveals. the numbers could change should apple have something revolutionary. charles: we do have breaking news. russia has issued an ultimatum for surrender of two ukrainian
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warships. we will keep you updated. now to the google glass competitor that we have been showing you. making its own pair of smart glasses with all the features of google glass, but it is a much more attractive package. they can even be used with subscription lenses. we have the founder and ceo here with us. we were just talking about the loss in market share in respect to tablets. sandra pointed out price. you guys have a pretty attractive price point. >> correct, charles. we do have a pretty attractive price point. we are targeting a very aggressive price point. it will be around $600.
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charles: how long were you guys working on this? >> this project started out as a home project. it took a couple of tidbits. we had a different core technology. one that really allows people to have their personality. we will offer a variety. we designed this product from mere mortals. people who like to wear glasses. you tend to wear a lot of stylish classes. charles: i am looking at a company. they are are a whole lot of
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people piling into this category. >> correct. i think it is good for the market. i think it is good for people to have a choice. we will be one of the leaders. we are not as high end as some of the others, but we are giving people access to what they want when they want it. a sideboard just got on the car. >> absolutely. >> i am not someone to bash the product. clearly, the market wants something different. we are here to fulfill that need. >> let's get a timeline going.
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how much money do you guys think you will start making right out of the gate? >> we are a pretty attractive profit margin. we will be starting production early next year. charles: hey, cory, thanks a lot. we appreciate it. >> thank you for having me. vladimir putin in the driving seat. remember back in 2012, but are huckabee on this after the break. >> what is the biggest geopolitical threat facing america, you said russia. not al qaeda. you said russia.♪ ♪ like, really big... then expanded? ♪ or their new product tanked? ♪
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we enable you to reach global markets and drive forward with broader poibilities. cme group: how thworld advances. ♪ charles: ukraine is the big story dragging on the stock market this morning. also affecting the oil market. right now let's take a look at old. gold is having a huge day. now to pfizer. the company moving ahead on its goal. though shares are relatively unchanged. let's take a look at sears. deciding to go over systems to investigate possible data breaches. as of now, they are saying that there is no evidence.
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just last week they bought the rights. netflix shares are down. was mitt romney after right after all?
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charles: we have more headlines for you out of ukraine. pro- russian troops have taken over a marine base.
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a few minutes ago, we told you russia issued an ultimatum. we will continue to keep you updated there. is there a big merger coming on tobacco? nicole: the story here is that they should be looking at lorillard. it was a fly on the wall. you can see them up 1.6%. they even put a price target here. again, speculati.
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we are not hearing this from the companies themselves. we will see whether or not there could be some takeover talks between these two tobacco companies. charles: they have been in the rumor mill on and off. thanks a lot. president obama made fun of mitt romney over his concerns over russia. take a listen. >> excuse me, a geopolitical fall. i said in the same paragraph, iran is the greatest national security threat that we face. i have clear eyes on this. i will not wear rose-colored glasses when it comes to russia or mr. putin. the cold war has been 20 years.
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nicole: governor mike huckabee joins us. it looks like mitt romney was right. by the end of the day, the cold war may have been over for 20 years. we have a guy in russia that i do not think the cold war was ever over four. >> i do not think it was either. this whole idea that we could trust the russians, it has blown up in his face. in some ways, literally. what mitt romney was understanding was that unlike al qaeda that had limited forces and when it acted, they acted definitely, the fact is russia can put thousands of troops on the ground in a very, very short period of time. that is what we have seen. on the very week we announced who will be selling off a lot of the good that we have by cutting drastically the army, the air force, marines and the navy. it could not the worst timing.
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charles: once i am reelected, we can talk. do you think all of that emboldens vladimir putin who obviously said almost everyone has very little respect for everyone to begin with. >> several things have happened. he sat and watched as time after time we have a president that just simply says big names but does either little things or nothing at all. it has happened in syria. it has happened in egypt. we did not even raise our voice to get rid of the -- we did not get any encouragement to the protesters there. on one hand, we have a very passive president when it comes to the world stage even though
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he talks tough, he does not carry a stick at all. he gives the stick away to the other side. at a time when you can achieve some sense of holding back that type of the literary force is to have an iron fist. that is what we are projecting to the world. putin has no reason at all to intervene. he knows we will not. charles: as every year goes on, our stomach for war, our stomach for casualties diminishes greatly. you think about the people were lost in world war i, world war ii. do we as a nation even have the stomach to fight battles
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anymore? >> no. we really do not. we have been in too many lately. the best way to avoid that kind of bloody conflict is to have an army that is overwhelmingly beyond powerful that nobody wants to test its mettle. did you have to have a president at the other side. whether he would or not, he would use it. we have neither. we are decimating the forces. while we are downsizing, we also have demonstrated that not only do we want a smaller army, smaller footprint, smaller military force, we really do not want to use it. as a result of that, they always come through superior strength. not at a sense of dialing it all back. the one thing you can count on, we will not get involved.
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when you do get involved, you are in a real mess. the other side has been preparing for it for a long time and you have not. the best way to keep from it is to have a much superior force. charles: the other side has to believe that you will use that force. governor huckabee, thank you very much. charles: matthew but, hey -- he thinks someone you may not accept. especially from hollywood. that is next. ♪
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charles: we have to update you on the market shares. 16119. ukraine oil is up $2.12.
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>> first off, i want to thank god. that is who i look up to. he has graced my life with opportunities. charles: sandra smith still with me. i have to tell you, i just got goosebumps. >> he shows appreciation for his wife and beautiful children. it was really beautiful. i guess you are pointing out that the audience did not seem to relate -- charles: talking about his father being in heaven watching this.
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it was a great example. charles: the revolution out. for the first time ever, he will respond to vladimir putin calling china. we have a jampacked second hour. buckle up. we will be right back. ♪ change engineering in dubai, aluminum production in south africa, and the aerospace indury in the u.s.? at t. rowe price, we understand the connections of a complex, global economy. it just one reason over 75% of our mual funds beat their 10-year lipper average. t. rowe price. invest with confidence. request a prospectus or summary prospectus with investment information, risks, fees and expenses to read and consider carefully before investing.
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charles: stocks take a huge hit on ukraine and here's else we have got for you. the revolution app using ukraine and venezuela, we have the ceo. vladimir putin winning the global game of chess. talking to china before invading the ukraine. china, no one else? on that. and warmer destination on this cold, snowy day in much of the country. you're not alone.
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and we will tell you how a man's daughter cost $80,000 with an obnoxious facebook post. and jerry brown warns of the dangers of legalizing pot. go figure. "varney & company," here we come. ♪ charles: we've got to check the big board. selling falling apart, 224 points. ukraine is the big spread this morning. we had found some support for a moment but that is all gone. headlines continue to escalate. pro-russian troops have taken over a marine base, an ultimatum for the surrender of two ukrainian warships, so here's a look at oil to the upside, $2, don't forget about gold having
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an update. does this ukraine thing drag on the market? or are there other headlines? >> it is not quite the black swan event because ukraine has been a hotspot for some time and sandra smith has been all over the energy story affecting europe. the issue that we are looking forward to of course is the jobs report with participation right at 78 levels. we are not in stagnation. charles: do think it is as important or more important than the headline numbers which mark >> it is as important if not more important. it is huge and it weighs on the federal reserve. charles: it might be the best gauge of continents, there are
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some good ones, but dropping out of the system is a real veto. thank you. olive garden giving a disappointing forecast and they blame the winter weather. where are those? >> in the midst of trying to spin off red lobster. a huge moved to the downside. issuing a forecast for the third quarter we coulddthan expected, they themselves talking about the severe winter weather hurting business as they continue to look to see what they can do with red lobster, maybe sell off some real estate assets. severe winter weather affecting another company, the one that is suffering today. charles: they can blame the weather this time but they have some work to do. record profit at berkshire hathaway. warren buffett leaves the rich
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should be paying more taxes, so wants to talk to about this. how many of those profits go to the government? the guy makes so much money, his company makes so much money and he seems to have it both ways. >> we already know warren buffett's take on the tax system. he has said we can expect even too slow to moderate growth as we have been since 2009. how does tax policy affect the slow growth going on, right, charles? charles: corporate tax policy, higher minimum wage. i don't know how many of his employees work a minimum wage, but it seems weird because i'm one hand he is a businessman. when the country was melting away he was finding great opportunities to enrich himself but he lent his name to propaganda that hurt capitalism
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that he embodies. >> anytime a very wealthy person talks about tax policy commie have to wonder commie have to think about every income bracket and i am not sure these people in the upper bracket, i know warren buffett is a man of the people on the street, but when i see the small business guy getting hammered 65%, when they can organize their profits to get around the tax code and a little guy can't really do that, 65% all in, state, federal, local, it is aabig deal. charles: we want people to climb the ladder and joinnyou up there. it will hurt the little guy. >> grow the pie, don't diminish the pie. charles: i would urge most investors to look to the letter. it is a fantastic letter, it has
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a lot of practical things for on that part i think it is pretty good. >> in the short-term the stock market is a voting machine and in the long term it is a weighing machine. charles: thank you. it is helping to fuel in ukraine. there is an app essentially turns your phone into a walkie-talkie. it has been one of the most downloaded apps in ukraine and venezuela helping ukrainian both of those countries spread their message and communicate with each other. we are joined with more. it seems to me we saw it in iran and to a lesser extent venezuela. these large governments find ways to jam communications to stop their opponents from spreading the word and organizing, your product is an effective way around this? >> that is true. an old playbook government try
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to control and shut down media. it was a number one app in egypt, and also in turkey, number one this week in ukraine and number one overall in venezuela. they attempted to shut it down and responded within 24 hours with an app. >> these hotspots helping, mason revolutions because of this, beyond the global hotspots, the commercial applications for everyone else, you want to tell us about it? >> it is not surprising is popular with organizing people. it is a version of the old walkie-talkie, two way radio. it works on live voice.
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voice communicates so well, so quickly, so efficiently you don't need to use your hands, you can communicate privately or publicly with few people are a lot of people. those characteristics, 55 million registered users around the globe, thousands of companies who use it at work. it is a private system for businesses to replace legacy push to talk for two way radio. >> the cofounder is from kiev, from the ukraine. it is so interesting, i love your comments on this. we have a cultural minister of iran saying we will throw in the towel, we cannot stop facebook ann longer. we have 4 million on facebook right now, even the top officials of iran are on youtube and twitter. it is not censoring, but what
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about slowiig down access to facebook or twitter, is that still a problem around the world especially in these hotspots like the middle east? >> my cofounder was born and raised in russia, and so closer to home with ukraine thannmost of us. we have seen some denial of service attacks in russia that were unsuccessful, that hurt a little bit of the responsivene responsiveness, we made it through those. it works on really or networks and it works well. we have heard reports from these countries because it is the only communication app that is live and working. designed for beginning to offer extremely fast, simple communication over sketch networks.
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charles: obviously they have disruptive properties, sort of the central idea when it comes to technology these days. where are you going to go with this? there is gigantic conversions between products like yours and others adding voice applications and so forth. >> the messaging field is very cluttered. we will focus on live voice munication's. in particular in the public conversations, that is the sweet spot we see that is so authentic. you cannot pretend with voice. it is designed toomake it simple for people to communicate with people they know or people they don't know. it is a unique space and also directly connected to our business product used to companies like w hotels, ikea, many large organizations for
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such strong communications. charles: we wish you continued success and i admire the role it is playing maybe freeing people around the world from oppression. continued success. >> thank you very much. charles: february sales down, you got it because of the weather, but lauren simonetti with a couple of right spots. lauren: talking ford and general motors. ford, these numbers are pretty bad down 6% year-over-year. the f series, this has been ford's best seller for almost four decades at this point. in february f series of sales up selling 56,000 units. the best february for the f series in about eight years. but the reason, one of the reasons it is selling so well is the price tag has been lowered with these incentives. the new f150 is coming out later
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this year. general motors sales overall down 1% in a month of february versus last february. small cars did very well for gm. the best february ever. back to you, charles. charles: thank you very much. we're getting a ton of responses. i want to focus on lockheed martin. the situation in ukraine. i love the company. a history of execution, they beat the street all the time. earning estimates continue to go higher. they're going to go down to 34 points, so less than anticipated. it is not the general defense contractor we think about, nano text, robotics, they have it on the drawing board going mach six.
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if you are in it, i would stay long the stock. no problem with russia's reactions in the ukraine. they carry of state john kerry will visit the region tomorrow. what bargaining chip can the u.s. offer? >> they will do what they want to do, take ukraine, they have enable base there. they take eastern ukraine.
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charles: the epa will announce a new rule requiring refiners remove your more sulfur from gasoline blends. more expensive equipment and refiners for refiners and carmakers. obviously this is it cost passed on to consumers. >> i think it is baked into the stocks. it was baked in that they would do this. major cities across the country. charles: situation in ukraine is waiting and russia-based stocks moving lower. no surprise.
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take a look at an internet company, happened to be long this company. if it goes any lower, i made by some on weakness. they have never been as high as they had been because of vladimir putin. guess this, china is the only country that russia consulted with before it invaded the ukraine. fox and friends host joins us now. it is amazing. vladimir putin sitting there saying the only country i don't want to offend is china. >> i picked up the english version, i looked this wanted to see how it is playing, it is amazing how they skew it in the propaganda. that i expected that. they reached out to explain their objectives before they did it. so here we are trying to say don't do it, they say watch me. they pick up the phone and say china want you to know there is not going to be a threat to you, we feel this is our national
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sovereignty. they talk about the growing alliance between the two. >> they've cut $20 billion deals. i have gotten closer and closer together sponsored by u.s. treasuries. >> what would be the problem with us say instead of sitting on the crack pipe to the entire western europe and ukraine, why don't we bring our natural gas over there, push germany and france to teach them fracking techniques to pull away and give some autonomy to the region. that will give them some street credit. charles: give a much bigger and accepting audience in russia, which houston has 400 companies that does business in russia, 400 companies, oil and gas companies doing business in russia. europe doesn't want it, president obama doesn't want it. we assume a de facto okay
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thumbs-up from china with respect to the invasion? >> they will not stand in the way. also on the radio about 30 minutes ago, he was saying if russia was able to pull this off to have their eyes on smaller nations in the area trying to almost reconstitute it what is left of the soviet union. charles: katie mcfarlin said look for eastern ukraine invaded by russia. i have looked at the map, the closer you are to russia the more the alliance. of course dark russian and then later and later. will they go to the dark to light part of ukraine? >> latest decree was ahead until 3:00 a.m. for armed forces to give up and surrender the priming in to them. and now russian protest propping up all around kiev and the surrounding area. they certainly weren't there.
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>> we do have reaction of commodities. what will be the impetus behind getting keystone finally approved? we are trying to be independent from hotspots like russia, we are not totally there, but we're on the road toward it. >> nothing will move the president quicker than the last three months putin now we are seeing more anti-keystone protest coming up. he will look to define what is happening in the ukraine to what is happening in keystone every way he can. charles: here is the thing, the political fallout has been pretty tough, democrats ask a president to show up when this time for election. some party distancing itself. at some point is not just an olive branch to republicans, not just an olive branch to the u.s. economy, it is for their own political party. >> mina keystone pipeline?
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i would think so because for democratic governors who wants to see a bill did for some reason he seems to be more into what is happening with those pro-environmental groups that surround keystone, and i sense after the last date department review that said go ahead and build it, no major impact. why is he going to do it in two more months, why wouldn't he wait until after the midterm elections again? went he have done it last two before the 2012 elections in september? he would have diffuse a lot of people who said his economics were not pro for the economy. charles: a lot of people are hoping this whole thing stops, russia won't get it, make a lot of noise like georgia that they invaded. they will be back on the u.s. economy. so far pulled it off without firing a shot. to become a full military situation where shots are fired,
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how far as the president willing to go? >> it will judge what we do if shots are fired. have a formidable force, however it is really hard-core. in the capital of that country. what about western europe, massive economic date starts flowing in there. charles: how do broke countries, italy, greece, spain, portugal, how do they come up with my to help out when they are effectively coming crawling out of the abyss of an economic demise that is self-inflicted? >> we are not paralyzed. they still able to invest. france, germany, some other countries, we can see the urgency of not losing ukraine three emerging russian power. >> putting the squeeze in the arm of the ukraine to put back the debt of russia.
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charles: they owe 34 billion over the next years. everybody hopes it goes away. thank you very much. at least it wasn't and armed invasion like last time. a girl calls out a school district on facebook ending up costing her parents $80,000. a crazy story and we will explain it to you after this. [ male announcer ] aody at rest tends to stay at rest...
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charles: welcome it may be the biggest facebook mistake ever. one daughter's facebook post cost her daughter $80,000. what is is all about? >> love this story. there is a man who is 59, the former head of a school. he is fired, sued for age discrimination, he wins, settlement $80,000, his daughter finds out about it. her fingers get excited about it, she writes this on facebook. mama and papa win the case against gulliver. gulliver's officially now paying
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for my vacation to europe now. she went to go for, the squirrel finds out and away the $80,000. then they tried to fight this. my daughter had all this psychological. they are out adk, and the messages be careful what you write on facebook. charles: or cash the check first. first rule of talking smack his cash the check first. always remember that, people. luxury goods, they are getting more expensive and they seem to be buying less of them. maybe we have found the latest to what the rich are willing to spend. >> look at some of these items. in the past five years look at the price of a chanel quilted handbag. coming up 70%. look at the price of the trinity
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gold bracelets now sells for 48% more than it did in 2009. more than doubling. there has been a drop off in the number of people interested in buying luxury brands that is a sort of rocking places like tiffany and coach. >charles: we were in louis vuitton over the weekend. they have a new bag $5800. you guys are pushing the envelope. we are trying to figure out when people will stop shopping. they will pressure me. >> is that really your business model? i think the people out there understand that i don't think luxury brands know that as well. charles: you talk about the most expensive, gaudy things in the world. they push the envelope.
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it seems people put a price tag on anything thinking there will always be a slice of the populace who will buy it. >> the high price in and of itself, you can show it off. if you walked on the street, nobody is going to know you are wearing chanel or gucci. the middle bracket i don't think they really care. charles: $1700, i is now four grand. it is the same bracelet. it should be $400 right now. i guess they figure sooner or later the right sucker will walk in. >> which means you with your wife. charles: harsh winter weather change a lot of people's travel plans. time to book a vacation to the caribbean.
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are there any deals out there? the president of hotwire.com is next. sometimes they just drop in. always obvious. cme group can help you navigate risks and capture opportunities. we enable you to reach global markets and drive forward with broader possibilities.
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charles: more messy winter weather covering a lot of this country this morning. here is a live map for you right now. ice hitting the mid-atlantic to southern new jersey with rain further south. the automaker blaming weak sales
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numbers coming out this morning. here is an area that is actually benefiting from the crazy winter weather. online travel for warm weather destinations up 40%. or more, president of hotwire.com, henrik kjellberg. you are seeing a lot more of this, tell us how much more. >> we are seeing searches going to warm weather destinations by almost 100% year in year. puerto rico, orlando, people really wanting to get away from the cold weather. charles: obviously the caribbean sounds great, does price play a factor? no more polar vortex. i will pay whatever to get out of here. >> there is a bit of both. we have seen tremendous when the weather is really bad, people make bookings further out.
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they tend to look a lot more when the weather has been left rough as it has been especially on the east coast. >> for the mom and pops out there watching, can you really get good deals on the travel websites? there is consolidations. the fear is maybe h you can't gt the same deals, getting two big and it is getting smaller. go ahead. >> it has been made a lot easier to find deals and it was 10, 15 years ago. we see a big increase in mobile bookings coming, let's give the consumers a lot of power to find deals right in their hand. trying to make a hotel booking in a different city, it was hard to find the deals. sites such as ours, hotwire, we enable that. charles: i watch several these publicly traded companies, seems
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like they have outpaced dramatically what has happened in the united states. is there a disconnect between online travel and people taking vacations in the u.s. economy? >> consumers in general getting disposable income, they want to go away. it is usually after a house, a car. they want to travel. this one of the fastest in the mobile space. consumers can find and access very complex data and we have made it very simple for people to find information and also making bookings where they want to go. charles: you reference technology. you guys obviously a big surge in travel bookings of mobile devices. 60% of them last year, is this the future of the travel business?
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>> we think fourth generation travel agent will be a consumer with a handheld device in his or her hand. the trends have accelerated over the past decade up until the 1950s there were essentially no travel agents, we have the advent of people booking online in the early 2000 now a big push toward mobile. we think it is going to change travel yet again. charles: will it empower the consumer? will they be able to use the power to force the issue with price and cost? >> there are big companies involved in the travel industry other competitive space, there are few players emerging as a leader in the space. the ultimate winner is the consumer. your information as a consumer, the ability for you to find
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data, to get great reviews on hotels, pictures and photos of where you are going and plan your holiday, that is an enabler for the consumer, without a doubt. charles: appreciate you taking time to explain it all to us. appreciate it. the crisis in ukraine pushing stocks lot lower this morning. lack of leadership not giving much confidence, but still some opportunities out there, so stay where you are, we have the real halftime report next. [ male announcer ] we know they're out there. you can't always seehem. but it's our job to find them. the answers. the solutions. the innovations. all waiting to help us build something better.
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charles: let's take a look at comcast, their close a deal for web video companies for $320 million helping deliver ads and web video format. shares down $0.86. cofounders of whatsapp have been added to forbes annual billionaires list. facebook offered him a total of $19 billion to buy the company. he will have about $7 billion. actin worth $3 billion.
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congratulations. apple report of the tribes to block games with the word "floppy" in the title. one-third of the new games are "flappy bird" clones. china, jobs report, russia, ukraine, we have it all. early. up late. thinking up game-changing ideas, like this: dozens of tax free zones across new york state. move here. expand here. rt w buness here... and pay no taxes for 10 years. with new jobs, new opportunities and a new tax free plan. for 10 years. there's only one way for your business to go. up. find out if your business can qualify at start-upny.com
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charles: we are at the midway point of the trading day, time
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for the real halftime report. joining the company from chicago, first to you, scott. tell us to what degree is a the market worried about ukraine? >> it is not just the chicago and new york market, it is a global market and a lot will tell you all week our phones have been blowing up. the real story here is look at the stock markets in europe, 3.5% for the german stock market to the downside. if you had it here it would be a lot lower. they're the ones in trouble because they get a lot of natural gas and oil. keep an eye on the strongest country in europe, germany, what that could do for the european states as well as the u.s. that is a real story here. we are only down one and a quarter. charles: on that note we keep
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hearing there will be sanctions. how much might could europe have and what would be your take on ukraine because of it? >> it is interesting. i am interested in the castration of risk in european banks. both are in trouble because they don't know how they will support a currency at a time they can't do it. natural gas, energy, this is until 5:00 today i guess is the deadline for ukraine to back down or there is going to a military storm' is the latest headline i have seen. charles: you follow netflix closely, we follow it very closely on this show as well. it won an oscar, but netflix on the right to stream the winner for the best short documentary. >> down 1% for netflix. the last 52 weeks has been a great performer up 135%. the bad news here is it lost the
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academy award for the square, about egyptian protest in egypt, there were high hopes for that. on the other hand, some good news for netflix, they acquired the rights to the short documentary, that is great news because it won an oscar. charles: holding up more or less not too bad. another volatile name we follow a lot, you are saying we should bet against the company and people should short the stock right now. >> longer-term i don't think you're going to find a more compelling ceo or business, but short term it like a ski jump. i think tactically it is a great short for a little while. charles: how short is short-term and what is your target? >> six to 12 days is short-term. i think 5%.
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charles: not bad if we can get it. apple ceo tim cook says don't buy the stock if you don't believe in global warming. you can't make this stuff up. >> tim cook getting in a fight with conservative investor on friday at the annual shareholder meeting. saying you're going to get 100% of your energy from green energy? what about return on investment, what will that do to the bottom line? get out of the stock, he said like mark zuckerberg two years ago say we don't care about profits. charles: it is obvious he did not have a bigger stake than carl icahn. >> he is talking about subsidies. charles: he should be concerned. real quick, your thoughts with that. >> i am good to see he stood up for what he believes in. he is profitable, i think it is a great move for tim cook and i like the fact he stood up.
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charles: he has a business to run, not an ideology, what is your opinion? >> my opinion is this is the most democratic society on earth the most democratic process on earth, if you don't like the stock, solid, if you don't like it, sell it. that is your option. charles: a lot of people worried about it over the weekend. nicole, back to you, where are those shares? >> sears a winner on wall street. u.s. secret service working closely with those over at target for that security breach. they were working with sears. the parent of kmart. so far so good, they have not thought information for security breach of personal data, credit cards and the like. >> where sears is trading at with the market cap is exactly where the market cap at 4 billion where the real estate break up value would be. charles: i was always the
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investment argument. love you, see you again tomorrow. right now, this be at toys "r" us playing off 200 employees. lauren, have to go to you. his amazon to blame? >> absolutely. this company gets into every industry they can get their hands on with sam's club, grocery business and now the toy business. there are post reporting toys "r" us is laying oof 200 people starting this week, most of them corporate jobs, and the reason is christmas sales in the dumps because people bought toys on amazon.com. here is the other thing, they don't care about toys much. things like toy toys "r" us, abt shares down. charles: we have it for you right now. the flower delivery company a bearish bounds. you know what, you have to explain this one to me because
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it feels like this is sort of a niche business that is fading away. i go to the supermarket, go to bodegas, somebody runs to my car with flowers. >> this is the trusted name in flowers, it big, huge, giant industry and they are the giant. a $20 billion industry and stays that way from war and peace. charles: it doesn't really have a lot of growth. you are saying it is a stable business, that is fine, but the legendary bearish bounds. how long does it continue? >> we think it will continue a lot, going up 40, 50% over the next year or two. charles: maybe even more contrarian, you guys like books. >> we do. that is another myth. people don't buy books. they do. barnes & noble sales just about sales were just about flat from
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a year earlier. if you go into one of the stores, the people are not vanishing. charles: last year no doubt, revenge of the brick and mortar. game stop, others written off for dead but is it inevitable they can't grow the way they have in the past and they lose revolutions? >> that could happen but it will not happen right away. it is left for dead right now. charles: trading at 19.60. last you made an amazing move to the upside. we will see if lightning can strike again. appreciate it. california governor jerry brown is not sold on recreational legal pot because most stoners are lazy. that is next. [ indistinct shouting ]
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charles: we got a big statement from california governor jerry brown. the legalization of marijuana. take a listen to this. >> and all of a sudden if there's advertising and the gym
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at sea, how many people can get stoned and still have a great state or a great nation? the world is pretty dangerous, competitive, we have to stay alert. more than some of the potheads might be able to put together. charles: a huge blow to the legalization of marijuana supporters. >> jerry brown has been characteristically blunt. we love jerry brown for that, but he is telling it like it is. he is saying you can't have a state full of potheads and get work done to get the state going in order to pay off its deficits. charles: everybody saying marijuana is this thing like smoking cigarettes with no negative impact to it. there is a negative impact. >> we wish somebody in d.c. just as blunt about health care incentivizing to play the ppano while somebody subsidizes them to leave their job. charles: you can't make this stuff up, exporting goods is
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suing the ceo of what else for allegedly pretending to be a senior executive, he told the store manager he had a meeting with the ceo and persuaded the employees to show him around in the private back areas and answer questions about the operations. is that balls he or what? >> is this true? a secret agent man pretending he is an employee? charles: a senior executive. >> i think it is a right if it is true, it is a little bit over the top. charles: it is embarrassing to say this guy walked in and anyone could have done that. >> they should give him a coupon, think it is funny. charles: ukraine is spooking the market. your take is next.
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♪ see what's new at projectluna.com
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>> the russians need american technology to develop their stuff in eastern siberia and other parts of the soviet union. we can go to them and help them or we can say, no way. charles: that was cato mcfarland earlier in the program. the reason we should know the keystone pipeline. now we are hearing just a couple of your takes on the show. you do not have to be a serial typical evangelical to think that. i say bravo. comment on climate change. tim cook is an idiot. moron. double! we will headed over to cheryl and adam. cheryl: charles payne, a lot going on in the last hour. charles: absolutely.
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our viewers will need you guys to handle them. cheryl: we cannot blame you for this one. charles payne. thank you, charles. hi everyone, i am cheryl casone. adam: we start with breaking news on the tense situation in ukraine. a russian state news agency that russians fleet has warned to surrender by tomorrow or face military storm. they dispute that cla.